Archived IMT (2008.12.05)

While the increasingly volatile BoE delivered its 100-bp cut to 2.00% in line with expectations, the usually measured ECB surprised with a 75-bp easing (biggest in its 10-year history) versus the quarter-point move anticipated by most analysts. The 100-bp rate cut from the Bank of England was in line with consensus but came as a disappointment to whisper expectations of what could have been a greater cut. Conversely, the ECB surprised with a 75-bp cut to 2.50%, departing from its practise of acting in line with market expectations, which are largely a product of ECB members public pronouncements.